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Young Scholar Advantage Plans
Young Scholar Advantage is a Unit Linked Insurance Plan specifically designed to protect the beneficiary in the unfortunate event of the policyholders death. The Life Insured here is the parent, not the child. The beneficiary, however, is always the child. In the absence of the parent, the childs financial needs are taken care of by the insurer. Thus the childs future is made secure by the plan. Key Features of Aviva Young Scholar Advantage This Unit-Linked child Insurance Plan ensures comprehensive life cover. The policyholder under this policy gets a choice of 7 different funds for allocating his/her assets for investments. The maintenance and management of investment portfolios are made easier with options such as the Systematic Transfer Plan, the Automatic Asset Allocation or with the fund switching options. Fund Liquidity is also offered under the plan. The policy helps the insured secure the future of his/her child in case of his/her absence. This Aviva unit linked policy has an inbuilt Rider to provide coverage against Accidental Death in order to provide added protection for the future of the beneficiary.
Product Specification of Young Scholar Advantage Plan
Details about Aviva Young Scholar Advantage Plan Premium Aviva Young Scholar Advantage Details Grace Period: The policy allows a limited period of 30 days since the date of your first unpaid premium. The Policys Grace Period is of 15 days if the premiums are paid on monthly basis. Surrender Benefit or Policy Termination: This policy might be surrendered post 3 policy years, provided all the premiums are paid. In case the policy is not renewed within the given time, then the policy shall be terminated. Termination of this insurance policy also occurs in case of payment of Death Benefit or Maturity benefit. Free Look Period: The policy allows the insured a limited time of free look period (15 days) since the receipt date of the policy documents in order to review the features of the policy. In case the insured does not want to keep the policy, he/she may cancel it. The policyholder shall receive the paid premium after deducting a proportionate amount of premium for bearing the risk for the time of free look period and all sorts of extra expenses. Inclusions under Aviva Young Scholar Advantage Top-up premium is allowed at anytime during the term of the policy, provided all premiums are paid. The minimum amount for the Top-up premium is Rs. 5000. The policyholder can switch between 7 unit-linked funds anytime during the term of the policy. The policy also allows the policyholder to redirect the future premiums towards different funds twice a year at any time of the policy year. The policy offers a settlement option for policyholders where they may opt for keeping their money invested in the funds even after maturity. In that case, the policyholder may receive the return systematically over a period of one to five years. With the Systematic Transfer Plan, the policyholder can enter the equity market at different times and different levels. The Automatic Asset Allocation plan helps to decrease the policyholders exposure to equity and increase the exposure to debt as time goes on. Additional Features or Riders offered under Aviva Young Scholar Advantage The renewal of lapsed policy can be done if the insured submits a reinstatement request within a period of 2 years since the date due for the payment of first unpaid premium. The following are the various charges applicable to this policy: Premium Allocation Charge is subtracted from the premiums paid by the insured. The balance premium is invested towards the investment funds selected by the insured. Policy Administration Charges are deducted in the beginning of each month. Fund Management Charge is deducted every year and differs as per the funds selected by the insured. In the starting of every month, Mortality Charges are subtracted by cancelling some units from the fund value. Switching Charge – The policy allows 12 free switches in one policy year. Post that, every switch is charged at the rate of 0.5% of switched amount, subject to a maximum of Rs. 500 per switch. Exclusions under Aviva Young Scholar Advantage The life insurance coverage becomes void in case the policyholder (sane or insane), commits suicide in the first year of the policy or renewal. The insurer shall refund the Fund Value as on the date of death. Accidental Death Benefit shall not be payable in case the death occurred indirectly or directly because of drug abuse or alcohol, not obtaining or not following medical advice, engaging in racing excluding swimming and athletics, riots, war, participation in dangerous activities, any functional or mental disorder, etc.
Benefits of Young Scholar Advantage
In case the policyholder survives till the maturity of the policy, he/she is entitled to receive Maturity Benefit, which is equal to the Policys Fund Value on the date of maturity. In the unfortunate incident of the policyholders demise, the nominee receives the Death Benefit.The Death Benefit, which is paid along with the Top-up Sum assured (if any) is higher of the following: Base Sum Assured, 105% of the total premiums paid. All the schedule future premium payments are waived off and a lump sum payout as per the provisions of the plan is made by the insurer. However, the policy continues till it reaches maturity. The nominee is entitled to receive Accidental Death Sum Assured in event of the accidental death of the policyholder. The amount of Accidental Death Sum Assured is same as the Base Sum Assured. The sum assured, however, limited to Rs. 50 Lakhs. Guaranteed loyalty additions are available with this policy. On the basis of the policyholders propensity to bear risks, he is offered a choice of 7 Unit-Linked Funds for investments. The policy ensures liquidity by allowing partial withdrawals. However, the withdrawals are allowable only after the completion of first 5 policy years. The policyholder can opt for the Systematic Partial Withdrawal option as well after completing five policy years. Tax benefits are available on the premium paid and Death Benefit received as per the Sections 80(C) and 10(10D) of the Income Tax Act, 1961.